BTC/USD PRICE OUTLOOK: CATHIE WOOD’S ARK FILES FOR BITCOIN ETF APPROVAL
- Bitcoin proponent and ARK Invest founder Cathie Wood files for a Bitcoin ETF
- BTC/USD price action perked up a bit but the crypto is still facing headwinds
- SEC Chair Gary Gensler stated how Bitcoin ETF approval is unlikely this year
Bitcoin price action looks quite uninspiring today. Not only is BTC/USD price action practically flat on balance, it is also underperforming other major cryptocurrencies like Ethereum. ETH/USD is pacing a 7% gain on the session. To be fair, crypto bulls staged strong bids over the weekend and helped Bitcoin recoil higher off recent swing lows. Yet, news that Cathie Wood’s ARK Invest just made a move to list a Bitcoin ETF could not even help extend the rally.
According to the SEC filing submission, the exchange-traded-fund would be listed under the name “ARK 21Shares Bitcoin ETF” and ticker symbol “ARKB.” That said, the little reaction by BTC/USD price action to the news makes sense in light of recent commentary from SEC Chair Gary Gensler. Specifically, Gensler noted in a congressional testimony that “odds we will see a Bitcoin ETF approved in 2021 are very low.” The SEC Chair also communicated how “there are many challenges and gaps for investor protection in crypto markets.” For now, this stands to keep Bitcoin accessibility – and demand – relatively limited to a degree.
BTC/USD PRICE CHART: DAILY TIME FRAME (11 MARCH TO 28 JUNE 2021)
Chart by @RichDvorakFX created using TradingView
Shifting focus to the technical landscape for BTC/USD price action, we see that the crypto has been carving out a choppy trading range since mid-May. Maintaining altitude around the $30,000-price level is mission critical for Bitcoin bulls. Invalidating this technical support level exposes the crypto to greater pullback potential. That could bring the $17,000-handle into focus as the next layer of defense, which is underpinned by the 78.6% Fibonacci retracement level of Bitcoin’s March 2020 to April 2021 trading range.
Bearish continuation might be catalyzed by the resumption of US Dollar strength and general market risk aversion in response to FOMC taper fears or delta covid variant concerns. On the other hand, eclipsing the descending trendline and 20-day simple moving average could suggest that Bitcoin bulls are wrestling back control. To that end, the recent MACD crossover likely serves as a constructive development for upside potential. This might motivate a bigger rebound toward month-to-date highs around the $40,650-price level before the psychologically-significant $50,000-zone comes into consideration.
— Written by Rich Dvorak, Analyst for DailyFX.com
Connect with @RichDvorakFX on Twitter for real-time market insight
